China’s Tsinghua Aims Big in the Memory Market

China’s Tsinghua Aims Big in the Memory Market

In our previous blog, we discussed the possible buyout of Micron by Chinese company Tsinghua. Although the proposal was declined, China’s Tsinghua is aiming big int the memory market.

Zhao Weiguo, Chairman of China’s Tsinghua Unigroup Ltd, revealed with Reuters in an exclusive interview that Tsinghua Unigroup is in talking with a U.S.-based company involved in the chip industry.

More details about this deal, which is expected to be finalized by the end of this month, are not known at this moment. But, Mr.Zhao did imply that it would not be a takeover of majority of the company, which was a sensitive concern of the U.S. government.

Tsinghua Unigroup holds the ambitious plan to be one of the top 3 worldwide chip manufactures with $47 billion investment in 5 years. In the last two years, Tsinghua Unigroup has spent over $9.4 billion making acquisitions both at home and abroad. Targets includes Western Digital Corp, Taiwan Powertech Technology, and Spreadtrum Communications.

Who is the potential target this time?

 Intel: Intel just announced that it would be investing $5.5 billion in China to convert its factory into a NAND chip factory. This strategy goes along with Tsinghua Unigroup’s focus on NAND.

 Micron: After declining Tsinghua’s purchase proposal earlier this year, it is possible that Tshinghua Unigroup decided to take a step back and only to buy part of Micron’s stake.

We will keep a close look at the deal and update with more information as we receive it.